Can the central bank of a small open economy be mandated with the maintenance of both fixed exchange rates and monetary … independence, and still succeed in the long term? Looking at a pioneering experiment put in place by the National Bank of Belgium … stabilisation of exchange rates, but through the stabilisation of central bank liquidity (i.e. the ‘margin of manoeuvre’ available …

Bank of New Zealand and the Norges Bank, the two central banks with the longest history of publishing interest rate paths …. We derive and estimate a policy rule for a central bank that is reluctant to deviate from its forecasts. The rule can …

We employ information-gap decision theory to derive a robust monetary policy response to Knightian parameter … uncertainty. We show that such information-gap robustness is a proxy for probability of policy success. Hence, policies that are …

communicated has, according to theory, implications for the outcome of monetary policy. Norges Bank has gone further than most … other central banks in communicating its policy intentions. The Bank publishes its own interest rate forecast, along with … forecasts of inflation, the output gap, and other key variables. Moreover, Norges Bank aims to be precise about how the policy …